Saint Lucia: Financial Institutions Urged to Prioritize Due Diligence in Transactions
As part of its efforts to combat money laundering, terrorist financing, and proliferation financing, the Saint Lucia government has emphasized the importance of due diligence in financial transactions. In this article, we will explore the country’s anti-money laundering regulations and the measures that financial institutions and individuals engaged in business activities must take to ensure compliance.
Customer Due Diligence Requirements
According to Saint Lucia’s anti-money laundering regulations, customer due diligence is required in various situations, including:
- Establishing a business relationship with a new customer
- Conducting transactions exceeding $10,000 or its equivalent
- Transferring funds without complete originator information
- Suspecting money laundering or criminal conduct
- Doubting previously obtained identification data
- Gaming operators conducting financial transactions exceeding $8,000
Enhanced Customer Due Diligence Measures
For high-risk categories, such as customers from countries not implementing Financial Action Task Force recommendations, enhanced customer due diligence measures are required. These may include:
- Conducting more thorough background checks on customers
- Obtaining additional documentation or information
- Verifying the purpose and nature of the business relationship
On the other hand, reduced or simplified customer due diligence measures may be applied where there are low risks of money laundering, terrorist financing, or proliferation financing.
Ongoing Due Diligence
Financial institutions and individuals engaged in business activities must identify and verify the identity of customers using reliable source documents, data, or information. They must also obtain information on the background, purpose, and intended nature of the business relationship. Ongoing due diligence is required to ensure that transactions are consistent with the institution’s knowledge of the customer.
Relying on Intermediaries
Financial institutions and individuals engaged in business activities may rely on intermediaries or third parties to perform customer due diligence measures, provided they meet certain criteria, including:
- Obtaining necessary information
- Ensuring availability of identification data and documentation
- Verifying the intermediary’s compliance with anti-money laundering requirements
Ultimate Responsibility
The ultimate responsibility for customer identification and verification remains with the financial institution or individual engaging in business activity, even if relying on intermediaries or third parties.
In conclusion, Saint Lucia’s anti-money laundering regulations emphasize the importance of due diligence in financial transactions. Financial institutions and individuals engaged in business activities must take steps to identify and verify the identity of customers, obtain necessary information, and conduct ongoing due diligence to ensure compliance with these regulations.